The combined inferred resource stands at 44.7 million tonnes at 2.50% total rare-earth oxides (TREO), including a from surface resource of 11.6 million tonnes at 4.30% TREO oxide ore, with a cut-off of 1.0% TREO.

The maiden resource is expected to be just the beginning, with mineralisation open in all directions and at depth.

The estimate forms the basis of the scoping study currently underway, which is expected to be complete in November.

Stephen Dobson, chairman, commented: “The announcement of the mineral resource estimate is an important milestone in the development of the Longonjo Project as a potential low-cost producer of the ‘in demand’ magnet metal products neodymium and praseodymium oxide.”

Angola remains a very supportive jurisdiction for mining, and is one of Africa’s largest oil producers, and the world’s fifth largest diamond producer (by value).

The Angolan government owns a 10% interest in the exploration licence.

Resource estimate details

The resource is split into two parts, the oxide material and the fresh material. The higher-grade oxide material overlies the fresh material throughout the deposit, mineralised from surface in every drill hole.

The average depth of the oxide zone is estimated at 20 metres below surface. Flat topography will lead to a very low strip ratio as feasibility studies continue.

The oxide zone measures 11.6 million tonnes at 4.30% TREO and the fresh zone measures 33.2 million tonnes at 1.87% TREO.

Metallurgical test work underway

Metallurgical test work is presently underway on composite samples of the diamond core.

Both the oxide and fresh mineralisation types are being assessed for their potential for physical upgrading to produce a high-grade flotation concentrate.

Background

Rift Valley Resources provides exposure to rare earths from the Longonjo project and copper through the Cassenha Hill project.

Both projects are within the 70% owned 3,760 square kilometre greater Ozango Project located in Angola.

Both copper and rare earths, particularly the magnet metals neodymium and praseodymium, are beneficiaries of the electric vehicle revolution.

Magnet metals of the future

Both neodymium and praseodymium, collectively known as NdPr, have experienced rapid price appreciation in 2017.

The main use of NdPr is in permanent magnets, or neodymium-iron-boron magnets, which are used in electric vehicle (EV) motors and already used in major EV models such as the Nissan LEAF, Chevrolet Bolt and BMW i3.

Demand is expected to grow further as Tesla made a decision to change their motor to a 3-phase NdPr permanent magnet motor in the Model 3 RWD Long Range model.

Scoping study to act as catalyst

According to Ashanti Capital, the Longonjo Magnet Metal Project should revalue upon delivery of the scoping study in November.

An advantage exists as a large proportion of the projected product value will be in the NdPr magnet metals.

The company has two core projects: T3 in Botswana and Kemco and a lead-zinc-silver project in Thailand

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